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Celebrate May 29 by starting a college savings account for your loved one
ATLANTA — Across the country May 29 is known as 529 College Savings Day, and the state of Georgia’s college savings plan, the Path2College 529 Plan, hopes to use this day to increase knowledge and participation in the state’s 529 college savings program.
“Our goal is to raise awareness among Georgia families about the importance of financial planning and saving for a college education,” said Mitch Seabaugh, executive director of the Path2College 529 Plan. “There are more than 2.5 million children under the age of 18 in Georgia, and only four percent currently have a Path2College 529 Plan account.”
According to Georgetown University Center on Education and the Workforce, 59 percent of America’s jobs required at least some college education, and by 2018, it is anticipated that more than 63 percent of American jobs will require some higher education. Additionally, the Center reports that by 2018, the postsecondary education system will have produced 3 million fewer college graduates than demanded by the labor market.
Seabaugh hopes to increase the number of students who have a college savings account, and his team works throughout the year to increase knowledge about the state’s plan and about the importance of financial planning for higher education.
“We currently have an annual newborn sweepstakes to help get the attention of new parents, where one baby born each year will win $5,529 for his or her college savings,” said Seabaugh. “Saving regularly over time is the best way to establish a strong financial foundation, but, it’s not only important for parents of young children to save. No matter what age you start saving, every dollar saved is a dollar that you don’t have to borrow.”
The Path2College 529 Plan was established in 2002. Contributions to the Path2College 529 Plan are eligible for a state income tax deduction regardless of annual income. Contributions are deductible for Georgia income tax purposes up to $4,000 per year, per beneficiary, for those filing a joint return and up to $2,000 per year, per beneficiary, for those filing a single return.
Any earnings in the Path2College 529 Plan are also federal and Georgia income tax-deferred. Withdrawals for qualified higher education expenses, which may include tuition, fees, books, supplies and equipment required for enrollment, such as computers and related technology such as internet access fees, software or printers, are federal and Georgia income tax-free.
Georgia families can save in the Path2College 529 Plan with a starting contribution as low as $25.
For more information about the Path2College 529 Plan or to enter the 2016 Newborn Sweepstakes, please visit www.Path2College.com or call (877) 424-4377.
Consider the investment objectives, risks, charges and expenses before investing in the Path2College 529 Plan. Visit www.path2college529.com for a Plan Disclosure Booklet containing this and other information. Please read it carefully.
Before investing in a 529 plan, you should consider whether the state you or your beneficiary reside in or have taxable income in has a 529 plan that offers favorable state income tax or other benefits that are only available if you invest in that state’s 529 plan.
Taxpayers should seek advice from an independent tax advisor based on their own particular circumstances. If the funds aren’t used for qualified higher education expenses, a 10% penalty tax on earnings (as well as federal and state income taxes) may apply.
Account value for the investment options is not guaranteed and will fluctuate based upon a number of factors, including general market conditions.
TIAA-CREF Tuition Financing, Inc., Program Manager. TIAA-CREF Individual & Institutional Services, LLC, member FINRA, distributor and underwriter for the Path2College 529 Plan.